According to the IMF, the US per capita GDP (PPP term) is 35.6% higher than Canada. In a recent post, I Pauled to a casual observer that Canada’s standard of living appears to be quite close to the standard of living in the US, despite being slightly lower. In this post I will try to address the question of why the per capita GDP gap appears to be much larger than the living standard gap.
Healthcare is a good place to start. The US spends 18% of its GDP on healthcare if Canada spends less than 12% of its GDP. In my view, much of the US health spending is pure waste caused by intense, explicit and implicit subsidies, combined with strict restrictions on healthcare supplies. However, even if we assume that 100% of American healthcare spending is useful, the spending gap can help explain why the gap in living standards is smaller than the per capita GDP gap. Tourists visiting Canada’s Notices include homes, appliances, cars, clothing, restaurants, infrastructure and other aspects of living standards. Unless they visit the hospital, it is unlikely that they will notice some of the GDP that is in health care.
A similar argument applies to military spending. This is the region where the US will increase Canada by 2.1% of GDP (3.4% vs. 1.3%). Again, there are different views as to whether this spending is useful or wasteful. However, ASE has little doubt that military spending does not consider recognition of standard of living.
These two factors alone can explain 8% of the 35.6% gap in GDP/Capita. However, AE is a number area that may help explain some of the gaps. According to ChatGpt, the US spends 6.0% of its GDP on education, while Canada spends around 5.2% or 5.3% of its GDP (both public and private). Again, tourists may not realize that it is different.
I recently received a note saying that umbrella premiums will almost double next year. They cited this reason:
Personal Injury Settlement and Limited Litigation Costs: California is known for its high ju appraisal awards and legal settlements in the case of personal injury such as car accidents and facility liability. This is influenced by factors such as California’s comparative negligence law and lack of CAP for non-economic damages, which often leads to greater payments.
Driving in California, hundreds of signs find people in the royal family or someone they imagined they might have repeated. Did you get drunk and break your car? Sue the bartender. I think Canada has a predatory legal system. This could contribute to a higher standard of living in a certain amount of GDP. (Please correct this if you’re wrong – I didn’t see these signs on my recent trip to Canada.)
As the US has a much higher crime rate than Canada, Parablay is spending more on crime prevention. This includes obvious spending by police and prisons. However, crime also has indirect effects, such as making urban life more comfortable in Canada than in many American cities. Metro Chicago is richer than Toronto, but urban crime affects Chicago’s achievements. This may also contribute to the perception that American standard of living does not meet there.
Ultimately, I estimated that the standard of living in the United States – in purely material terms, is inherited 10% or 20% higher than Canada, rather than 35.6%. I’m curious to see what other people think.
Poetry Canada is a completely normal developing country. The most interesting question is not “Why is Canada poorer than the US?” Rather, the important question is, “Why is the United States richer than developed countries in the event that are not Switzerland and Norway?”
